Treatment of unsecured loan paid after death of my husband

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This discussion addresses the process for a wife to transfer an unsecured loan receivable by her deceased husband into her name. It clarifies that while the loan can be transferred, any interest paid by the wife will be considered a personal expense and won't be deductible under the IT Act. The repayment of the loan will reduce her capital, but she has not received any capital from her husband in this context.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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24 December 2022 An unsecured loan of Rs.5.00 lac was receivable by my client A from a person. Mr. A died. Now how can wife of Mr. A get the said loan transferred to her name ? so that Interest and ITDS can be shown be in her ITR .

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 December 2022 Whether any amount/capital received by wife as legal heir from her husband?

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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24 December 2022 No, nothing received.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 December 2022 Interest paid by her will be her personal expenses, while loan repayment would reduce her capital to that extent. She cannot get any deduction under IT act.

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